The National Restaurant Association reports industry performance ticked up in September. Foodservice hiring shot up in October after hurricanes resulted in massive job losses in September. JAB Holdings, owner of Krispy Kreme and Panera Bread, may be pursuing Dunkin’ Brands. These stories and a whole lot more This Week in Foodservice.

The National Restaurant Association’s Restaurant Performance Index (RPI) edged up for September with the index rising 0.5 percent to 100.7 (any reading over 100 indicates growth).

The Current Situation Index fell 0.1 percent to 99.9. This is the third consecutive month the Current Situation Index fell. Same-store sales in September were virtually identical to those in August but customer traffic continued to drift lower for the sixth consecutive month.

The other major component of the RPI, the Expectations Index, rose 1.1 percent to 101.6. More operators expect higher sales in six months than did last month. Operators were also more optimistic about the direction of the economy.

As for investing in their businesses, 61 percent of those surveyed made a capital expenditure for equipment, expansion and/or remodeling in the last 3 months. This is a decline from 65 percent in August, but still an impressive finding.

Regarding future spending, 59 percent said they will invest in equipment, expansion and/or remodeling in the next 6 months. This compares with 52 percent last month.

While the numbers are not great, it does appear that the September report shows some slight improvement.

Economic News This Week

Initial jobless claims fell by 5,000 to 229,000for the week ending Oct. 28. The 4-week moving average fell by 7,250to 232,500. This is the lowest the 4-week average has been since April 1973. The Department of Labor again reported that hurricane-damaged Puerto Rico and the U.S. Virgin Islands have had difficulty in processing jobless claims.

ADP reports strong hiring in October.The payroll processing company announced that the economy added 235,000 new jobs last month. All firms added to their employment in October, regardless of size. Small firms (fewer than 50 employees) hired 79,000 new workers, mid-size organizations (50-499 employees) added 66,000 new hires, and large companies (more than 500 employees) hired a hefty 90,000 workers.

Employment bounced back in October with the economy adding 261,000 new jobs,according to the U.S. Department of Labor. This is the largest increase in more than a year. In September, hiring was negatively affected by hurricanes. The unemployment rate, which is determined by a separate study from the employment survey, fell 0.1 percent to 4.1 percent. The last time unemployment was this low was December 2000. (For foodservice employment trends last month, please see the Foodservice News This Week section below.)

The Institute for Supply Management’s Non-Manufacturing Index was up slightly in October. The Index was up 0.3 percentage points from September to 60.1. (Any number greater than 50 indicates increasing activity.) New orders and order backlogs retreated but stayed well above 50 while the employment index was up 0.7 percentage points. The Institute also reported that 16 of the 17 non-manufacturing industries in the study, including accommodations and foodservice, experienced growth in October.

The October Chicago Business Barometer hit a six-year high.The Index rose to 66.2, up from 465.2 in September. (Any number greater than 50 indicates expansion.) New Orders and Production both rose to levels not seen since 2014, while Order Backlogs reached a 43-year high. The Employment indicator fell into contraction mode as employers appeared to be losing skilled workers.

Is JAB Holdings interested in acquiring Dunkin’ Brands?JAB Holdings owns Krispy Kreme, and more recently bought Panera Bread Company. At least one source claims JAB Holdings has been interested in Dunkin’ Brands for some time. The purchase of Dunkin would fit in with JAB’s strategy of building up coffee and breakfast brands.

Is Starbucks being “middled” by the competition?Some analysts believe Starbucks is being hurt on the one end by upscale operations, like Blue Bottle and Intelligentsia, and on the value side by operations like McDonald’s and Dunkin’ Donuts.

Happy Joe’s Pizza and Ice Cream Parlors sold. The chain, which currently has 55 locations in 7 states, was purchased by Dynamic Restaurant Holdings. The company said it intends to expand Happy Joe’s regionally, and then grow nationwide. Terms of the deal were not disclosed.

Growth Chains: Friendly’s plans to open 5 to 10 stores a year. BJ’s Restaurants will open 6 locations in 2018. Dickey’s Barbecue Pit has signed a partnership to open 45 restaurants in 7 countries in the Middle East. Flippin’ Pizza is expanding in the next few years to California, Georgia and Texas. Freddy’s Frozen Custard & Steakburger opened locations in Georgia, Indiana, Illinois and Texas. Shake Shack will open 32 to 35 restaurants in 2018 in the U.S. and 16 to 18 internationally. Dairy Queen has opened a Grill & Chill in South Korea, the first of 50 units planned for that country.